Friday, March 29, 2019

The Effects of Pricing Your Home Incorrectly

Listing your home at the correct price the best strategy in today’s market, and here’s why.

In our market, I’ve seen the ups, the downs, and everything in between. While we’re currently up at
the top, we predict that the market will be flattening out before long. And when the market
changes, we can’t expect the same old strategies to continue working well.

We’re getting the same question from sellers lately: Should I price my home high from the
outset and simply lower it if needed?

If you don’t price your home correctly from the beginning, you can never get back once you start
making reductions. It’s a huge gamble that, more often than not, loses you both time and money.

We had a client who wanted to sell their home for $550,000, but we knew it was worth closer to
$525,000. They decided to try it at their price for around a month and a half. After it sat on the
market without an offer, they lowered it to our original recommendation—but the market didn’t
respond. They had to lower it by an additional $10,000 before it would sell.

When you price your home too high, there’s a very short window to change it. If you miss that
window, you have to figure out what the new “normal” is, and it’s likely far below what you could
have gotten in the first place.

Price it right from the beginning—don’t base it off what your neighbor’s home sold for or other
random advice you’ve heard. We go a few layers deep, looking at comparable sales, under-contract
homes, active listings, and much more. After looking at all of these trends, we can get a clear
picture of what your home should be priced at.

If you are looking to sell your home, have any questions, or need more information, feel free to
reach out to us. We look forward to hearing from you soon.
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